IOB assistant branch manager arrested for ₹3.09-crore gold loan fraud

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A bank official entrusted with safeguarding customers’ gold allegedly turned it into a ₹3.09 crore fraud. The Central Crime Branch has arrested an assistant branch manager of Indian Overseas Bank for allegedly replacing 2,179 grams of pledged gold jewelry with fake ornaments.

The accused, Potnuru Murali Krishna, 34, a native of Visakhapatnam in Andhra Pradesh and a resident of Purasawalkam, was working as the assistant branch manager at the Indian Overseas Bank branch in Ayanavaram.

A case was registered following a complaint filed on August 13 by the branch manager of the bank.

In his complaint, he alleged that the accused had fraudulently removed gold jewelry pledged by around 21 customers and replaced it with imitation ornaments.

An investigation by the Bank Fraud Investigation Wing of the Central Crime Branch revealed that Murali Krishna pledged the gold with other private gold financing firms to raise money.

The police said he used the funds for online gaming and personal expenses. Following this, a CCB police team arrested Murali Krishna. He was produced before a court and subsequently remanded in judicial custody.

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